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American Suzuki Bankruptcy Approved

American Suzuki received bankruptcy court approval of its Chapter 11 reorganization plan to wind down its U.S. auto sales operation and continue selling motorcycles, ATVs and boat engines.

That means that if you own a Suzuki car, you should try your best to dump it now before the values plummet, which will happen in the next couple of weeks.

A U.S. Bankruptcy Court in Santa Ana, Calif., approved the plan, leaving the company poised to complete its bankruptcy restructuring by March 31, according to a company statement.

American Suzuki filed for Chapter 11 bankruptcy protection on Nov. 5.

The plan calls for American Suzuki’s motorcycle, ATV and marine engine businesses to exit bankruptcy as Suzuki Motor of America, a new, wholly-owned subsidiary of Suzuki Motor Corp., the corporate parent of American Suzuki.

Suzuki dealers sold 1,764 vehicles last month. A Suzuki spokesman contacted Friday did not immediately know how many vehicles remain in stock.

“Today’s confirmation is a significant milestone and is one of the last remaining steps in our realignment and restructuring process,” Freddie Reiss, American Suzuki’s chief restructuring officer, said in a statement.

Suzuki will continue to honor vehicle warranties and most of its 219 auto dealerships will continue to provide parts and service work for customers.

In December, 213 of Suzuki’s remaining U.S. dealers agreed to wind down sales operations in exchange for cash and fixed operations-only contracts. Those 213 buyouts were valued at more than $40 million, with Suzuki’s largest dealers receiving more than $1 million while its smallest stores accepting as little as $25,000.

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